AMD CEO talks tough about Intel's tactics
Advanced Micro Devices (AMD) CEO Hector Ruiz said Monday he's confident that authorities will find that Intel (INTC) used illegal tactics to compete in the semiconductor market.
Speaking candidly to a gathering of technology bloggers in San Francisco, Ruiz said that once Intel's behavior changes, he expects AMD to gain market share more quickly.
European regulators said in July that Intel gave computer makers improper payments to ensure that they would not use AMD chips, and that Intel selectively slashed prices to keep AMD from winning contracts. The European Commission is bringing a formal case against Intel, and Intel will have a chance to defend itself. If Intel's defense is not successful, it will likely face a fine that could easily run into the hundreds of millions of dollars.
Intel has defended its pricing actions, saying they have been good for customers and for competition. Customers that use chips from both companies include Hewlett-Packard (HPQ) and Dell (DELL). Apple (AAPL) uses Intel chips exclusively.
"There is no 'supposedly,'" Ruiz responded in the exclusive video embedded above when asked how he expected authorities to respond to claims that Intel supposedly used unfair tactics to compete. "It will be resolved in our favor, because the information is so blatant …. I'm convinced of that."
Ruiz went on to say, "When you look at the tremendous product that the Opteron family has been, we deserve a bigger share than we have. … This thing ought to result in their behavior stopping, the sooner the better. The moment it does, I believe we're going to have the opportunity to significantly increase our participation in the market. It's inevitable."
See more of Ruiz's comments in the video above.
Last I heard it was Intel that had the compatablity problem as many games would not run on their inferior graphics chipset.
Wow there is a lot of misinformation posted here.
The Japan Fair Trade Commission has found through its own investigation that Intel does preciely what Ruiz says above.
The European Union this summer said that Intel paid special rebates to computer makers if they limited AMD to a small portion of their product line, made payments to manufacturers for slowing down or canceling launches of products using AMD chips and sold server chips below cost when necessary to keep AMD from winning key customers.
And just today, the government of South Korea accused Intel of violating the country's antitrust laws after raiding Intel offices.
Please, people, you really don't seem to understand what happens when a company is in a monopoly position and abuses it.
Do you have any idea how small a portion of the market is sensitive to Intel or AMD's latest Doom 3 scores or Half Life 2 performance?
The vast majority of PCs sold worldwide are basic mainstream machines. That's what this is about. Intel has the market in a stranglehold and abuses it. It's not about Quake 4 frames per second.
It seems to me that the monopoly play is for the bigger company to sell their product at a loss until smaller company is run out of the business. But I can't find a quarter going back for the last 10 years where Intel has not made money; usually a lot of money. So they must be selling there product at the right price. And AMD is still in the business. And back when AMD did have a better product, they did win market share. So now AMD is complaining because Intel has a better product and can make it at a lower cost then they can…
Uh, looks like ya'll are socialists! If I have a better product at the right price the market will but it!! Ever been to a cafe and want a Pepsi but they only have Coke? Each company "pays" that cafe in lower bulk prices to use ONLY their product! This is neither unfair nor illegal ANYWHERE! Look at Intels' response to losing market share-fire 10% of workforce and invent Dual-Core. AMD's response ro losing market share cry to government that business is hard!!
"Uh, did I miss something? The whole point of being in business is to sell product (hopefully at a profit). So if my competitor lowers prices to gain customers–isn't that just business?"
Yea actually you missed a lot of things, first of all AMD has just as good if not better technology than Intel. Second Intel competing unfairly, basically paying companies buy its chips instead of AMD's.
"AMD please just make better chips and compete"
They do, and have for YEARS. You are unaware of this BECAUSE of Intel!
WHY DOESN'T INTEL JUST BUY AMD AND RAISE PRICES FOR BOTH AMD AND INTEL MICROS….THE US LOOSES WHEN US COMPANIES DON'T MAKE A PROFIT…..WHEN OUR COMPANIES KILL EACH OTHER WITH THE PRICE WAR THEN CHINA CAN TAKE OVER AND THEY WILL HAVE THE MONOPOLY…. STOP GIVING OUR TECHNOLOGY AWAY AND START MAKING A PROFIT FOR AMERICA
"Uh, did I miss something? The whole point of being in business is to sell product (hopefully at a profit). So if my competitor lowers prices to gain customers–isn't that just business?"
Wow…ignorance continues.
Yes you did miss something. Take a Business 101 course for the answer to your question.
"Mr. Ruiz continues to refer to events years ago and technologies released years ago." was commented.
Thats the whole point! Intel illegally stopped/slowed AMD products to market and gained an illegal monopoly, largely with help from Dell and Microsoft. The public (and you included) seems to think this is now okay and it was "all in the past".
Once a monopoly is made its hard to get past it. AMD was also the first in many product cycles which is amazing considering they have a much smaller R&D budget.
You are the product of the Intel monopoly, and your thinking can't escape it.
you guys are missing the point:
because Intel competed unfairly, AMD literally lost hundreds of millions in revenue. that revenue COULD have been used for increased R&D and ultimately could've resulted in better technology. and we the consumer could've benefited from these advancements. Intel hampered innovation and competition by bullying their customers.
The Opteron chip was considered superior for several years but adoption was slow because of Intel's entranches with Dell especially and other OEMs as well ("you used to buy 95% of your chips from us, now you buy 85%, get it back between 95-100% or we will make you life hell" Intel has position to do that and equipment manufacturers like HP and Dell can't afford to upset Intel – AMD just wants Intel to stop those mafia tactics). With it's new native quadcore Opteron chip they've regained the technology lead but it'll only matter if the Fed's can make the GodFather play fair (doubtful!!!)
Remember 1998 computers were $9000 thanks to intc. They took the consumer for everything they could. Thank god for competition but it needs to be fair.
Uh, did I miss something? The whole point of being in business is to sell product (hopefully at a profit). So if my competitor lowers prices to gain customers–isn't that just business? Example: 2 petrol station accross the street from eachother. which do you buy from? If they are both on the corner enticing you with a lower price, better service or free coffee is that illegal? Mr. Ruiz is a businees WIMP! Last year when AMD was gaining market share (with a better product) did intel cry to regulators in 5 continents? NO, they fired 10,000 workers and made a better product. AMD please just make better chips and compete, stop complaining to the refferee. By the way why are all your sr. sales staff jumping ship?
The way AMD acts is like me and my sister in the family. If I share my food or any good thing with her, she will be quiet and likes me, and not complains to my parents about my actions. On the otherhand, if I don't, she will complain for anything; even good things she will change to bad thing. This act is to ruin my reputation and make my parents dislike me, and take away my privileges for being a good child. This compares AMD is like my sister, and the customers are my parents. Move on AMD! Don't sit there and wait for profit from someone else by using the legal system. Thanks, Victor
AMD is sadly falling into the pattern of blaming Intel for every woe of the company. It must be a relief that none of it is AMD’s own fault! Get out of “we are the victim” mode and start taking responsibility for your company.
Mr. Ruiz continues to refer to events years ago and technologies released years ago. Markets and technologies have changed – as well as AMD's stock price (both up and down in the past several years). Competing products have also changed (for better or worse – depending on one's viewpoint). It's time to move on
Hey Lee: the New York Stock Exchange runs on AMD. They were at AMD's Analyst Day in July. At the launch event on Monday (webcast), the biggest special effects studio in the world said it runs entirely on AMD and is upgrading to quad-core.
Huh, do you think that would be the case if AMD couldn't run all x86 software? Again, there seems an almost willful intent to mislead on this board. Could Intel employees be getting nervous?